- Ryan Selkis recently highlighted the crackdown on crypto by federal agencies in the U.S.
- Selkis believes that the crypto industry will not succumb under Federal pressure.
- The four big banks in the U.S. have reportedly received a $210 billion bailout from the Federal Reserve.
Ryan Selkis, the founder of crypto data aggregator site Messari, recently took to Twitter to comment on the current environment in the crypto industry. Selkis highlighted the intensified crackdown by federal agencies in the United States against entities affiliated with crypto.
“The Feds have now taken out crypto’s three largest banking partners, served a Wells Notice to one of its top stablecoin issuers, attempted to squash thousands of tokens, de facto ban crypto VC through an egregious custody rule, and hunt down its top global exchange,” Selkis tweeted.
The Messari executive was referring to the closure of Silvergate Bank, Silicon Valley Bank, and Signature Bank, all of whom catered to crypto clients. These crypto-banking partners closed within a span of a week as a result of bank runs which triggered liquidity issues.
The Wells notice that Selkis referred to, is the one sent to Paxos Trust Company, the firm that issued the world’s third largest stablecoin Binance USD (BUSD). The attempts by the Securities and Exchange Commission (SEC) to classify hundreds of crypto tokens as securities is another act that has hurt the industry.
The lack of regulatory clarity paired with the hostile stance of federal agencies has made venture capital funding for crypto projects extremely difficult. However, Selkis believes that the crypto industry will not just die. “No one said the final boss would be an easy battle,” he added.
In other news, Custodia Bank CEO Caitlin Long revealed earlier today that the big four banks in the United States, namely JPMorgan Chase, Bank of America, Wells Fargo, and Citibank, got a bailout of a whopping $210 billion from the Federal Reserve. The bailout was made possible through the Fed’s Bank Term Funding Program, which allowed the banks to borrow against their negative collateral value.